SEBI overhauls Master Circulars for exchanges and clearing corps, cuts pages by 50%
A single Master Circular will replace separate ones for stock exchanges and commodity derivatives; clearing corps get their own. DMA registration discontinued, single-window for smart order routing introduced.
What changed
- SEBI merges Master Circulars for stock exchanges and commodity derivatives into one, cutting page count by 50%.
- Clearing corporations will have a dedicated Master Circular; common IT provisions consolidated for all MIIs.
- Registration of investment managers for DMA discontinued; single-window registration for smart order routing.
The read
This is SEBI's most ambitious rulebook cleanup in years. The regulator is cutting its own code, consolidating two Master Circulars into one, slashing page count by 50%, and delegating reporting to internal committees or website disclosures. Investment managers no longer need SEBI registration for Direct Market Access; brokers get a single window for Smart Order Routing. Investor Protection Funds for equity and commodity will merge, and Close To Money norms for commodity options are scrapped. Four consultation papers are out; the fourth, on Trading Software and Technology, closes July 13, 2026. The result, if finalised, is a leaner, faster regulatory machine, but only after market participants weigh in.
Primary source: official circular (PDF)